China to Increase Solar Power Capacity this Year
China is planning to install 15 gigawatts of solar power capacity for this year, a 43 percent increase than what is added in 2014 which seek to prop up its solar panel sector and boost the use of renewable energy even with the lack of transmission infrastructure. The National Energy Administration started to solicit industry feedback last week.
Experts say that the target given by the solar industry will require a total investment of US$20 billion. The 15 Gigawatts is only a figure, and the National Energy administration is looking for feedback from provincial government before any final decision. Officials from two U.S. listed Chinese solar panel makers also seen the proposal stated that the target should regenerate strong support from investors that interested in launching more projects ahead of a cut into solar subsidies by next year. In 2013, china unveiled a plan that will quadruple the solar generating capacity of the city to 35 Gigawatts by 2015 and boost the solar panel sector that is battered by a falling eurozone demand and trade disputes which was followed by a global financial crisis.
Transmission infrastructure is lagging behind the addition of generating capacity for city which has resulted in a glut of solar farms in the western region of China where there is plenty of sunshine but fewer infrastructures to harness and transmit the power to the south and east. To address the imbalance, China is seeking to build more the so called distributed solar rooftop panels and other small installations to drive the demand for solar power.
Distributed solar is yet to take off a it faces challenges from subsidies and bank support in difficulties in acquiring rooftops rights.